Click and Collect payment fraud on the up, ACI Worldwide

Merchants saw a 13% increase in fraud attempts in the Click and Collect channel during the 2018 peak holiday season, according to ACI Worldwide.

Its research, based on hundreds of millions of merchant transactions, including some of the UK’s leading global retail brands, shows that Click and Collect transactions increased 20%, peaking the weekend prior to Christmas. “As chip and PIN credit cards are harder for fraudsters to replicate, it is driving them toward card-not-present fraud,” says Erika Dietrich, global director, Payments Risk, ACI Worldwide.

“For example, fraudsters can use stolen credit card information to make a card-not-present purchase online and then simply walk in and pick up the item in-store. It’s not enough to simply ask the consumer for their ID, but retailers should always ask shoppers who pick up their item they ordered online for their ID and the card they used to pay for the product. We’ll see fraud around Click and Collect grow in the coming years and merchants will need to pay more attention to their omnichannel fraud controls.”